Introducing The SaaS Trends Report
Get timely insights on the state of the software market with Vendr's SaaS Trends Buying Report for Q1 2023.
Today, Vendr launches our first SaaS Trends Buying Report for Q1 2023, providing a comprehensive overview of the current state of the software market. To provide buyers with timely and actionable insights, we cover a range of topics, including the most popular software categories, top products by average contract value, and the performance of smaller SaaS players against top products.
The report also highlights the trend towards AI-powered tools and the SaaS pricing landscape, including the average contract value over time. Additionally, the report identifies six key factors influencing SaaS purchasing and provides predictions for Q2.
Key insights revealed in the SaaS Trends Buying Report
Here’s our TL;DR:
The report highlights the increased investment in sales and revenue, cybersecurity, and project management tools, with businesses prioritizing revenue strategy over growth. Additionally, the report identifies a rise in the average contract value, which is 23% higher than our ACV in 2022, indicating a trend toward a more expensive software market.
Our SaaS leaderboard is dominated by products in CRM, cybersecurity, project management, application performance monitoring, and digital analytics. Of these, Salesforce leads, doing the most deals at the highest annual contract value. Companies want to stick with products that have become part of their ecosystems, especially products with a comprehensive suite of integrations with other tools.
We’re also seeing some emerging investment in sales engagement and compliance tools, with Salesloft and Drata topping our list of net new purchases. Companies value growth alongside security, and the buyers that can invest in both are well-positioned going into the next phase of 2023.
Of course, the report highlights the emergence of investing in AI-powered SaaS, with 41% of software tools purchased in Q1 offering some form of AI feature – an unsurprising uptick from Q4-2022 and previous years.
In Q1 2023, Vendr partnered with our customers on over 2,900 software transactions. We analyzed each completed contract, including the product category, term length, and final negotiated price. The report's findings are also based on Vendr's historical analysis of billions in spend processed from tens of thousands of deals and thousands of suppliers. This comprehensive approach allows for a thorough analysis of the software market and its trends.
Data-driven decision-making is crucial for buying SaaS in 2023
As SaaS prices continue to skyrocket, businesses must rely on data-driven decision-making to avoid wasting resources on expensive, ineffective software tools. Q1’s SaaS Trends Report underscores the critical role of accurate data in helping businesses make informed purchasing decisions that will drive their success in today's highly competitive market.
Data analysis is the key to software buyers unlocking the best deals on the best-fit products. By leveraging historical data and staying up-to-date on market trends, savvy businesses can invest in software tools that strike the perfect balance between growth and sustainability. With this approach, companies can achieve their goals and drive success with the certainty that they’re getting a fair deal.
If you want to stay ahead of your competitors in the fast-paced software market, the insights provided in our SaaS Trends Buying Report are key. With valuable guidance on the importance of data-driven decision-making, top factors influencing software purchases, and the hottest software tools of Q1 2023, you can position your business as a key competitor and thrive in the coming months.